Smart Cities Mission: Selection and Implementation

Overview

The Smart Cities Mission was launched on June 25, 2015, to promote sustainable, inclusive and technology-enabled urban development. It seeks to improve core infrastructure, quality of life and urban governance through a mix of area-based upgrading and city-wide digital solutions.

The mission covers 100 cities selected through a competitive challenge process. It works as a centrally sponsored scheme with shared funding and special implementation structures at the city level.

Core Objectives and Approach

• Urban transformation: Improve water supply, sanitation, mobility, housing, public safety and other core services.
• Better quality of life: Create cities that are more liveable, efficient and citizen-friendly.
• Smart governance: Use technology and data-driven systems for better delivery of civic services.
• Local area focus: Combine neighbourhood-level development with broader municipal upgrades.
• Economic productivity: Support urban growth through better infrastructure and management.

Strategic Components

The mission is implemented through two broad strategies: Area-Based Development (ABD) and Pan-City Initiatives. ABD focuses on selected pockets within a city, while Pan-City Initiatives bring digital and operational improvements across the entire city.

Area-Based Development Models

• Retrofitting: Upgrades existing built-up areas of at least 500 acres without major demolition.
• Redevelopment: Rebuilds congested or old urban areas of at least 50 acres with higher density and improved utilities.
• Greenfield development: Develops new smart infrastructure on vacant or underutilised land of at least 250 acres.

Pan-City Initiatives

• City-wide technology: Applies smart solutions across the municipal area rather than only in selected pockets.
• Traffic management: Uses intelligent systems for signal control and transport efficiency.
• Water and waste services: Introduces smart water meters, leakage detection and automated waste collection systems.
• Digital governance: Expands e-governance portals and service delivery platforms for residents.
• Safety systems: Includes CCTV surveillance and emergency call mechanisms.

City Challenge and Selection Process

The 100 cities were selected through a competitive, bottom-up City Challenge model rather than a top-down allocation. The process had two stages and encouraged states and cities to improve governance before final selection.

• Stage 1: State-level competition: States and Union Territories ranked their cities on performance indicators.
• Selection criteria: Factors included online grievance redressal, municipal websites, monthly e-newsletters and civic service delivery performance.
• Stage 2: National competition: Shortlisted cities submitted Smart City Proposals (SCPs) to the central ministry.
• Evaluation: Expert panels assessed feasibility, citizen engagement, economic vision and implementation capacity.
• Selection rounds: Cities were added in multiple rounds between 2016 and 2018.
• 100th city: Shillong was selected in June 2018.

Funding and Implementation Structure

The Smart Cities Mission follows a Centrally Sponsored Scheme model with a 50:50 cost-sharing pattern between the Centre and the States or Urban Local Bodies (ULBs). The financial design combines government support with additional resource mobilisation.

• Central assistance: ₹500 crore per city, released over five years.
• Matching support: States and ULBs contribute another ₹500 crore per city.
• Base support: Government funding totals ₹1,000 crore per city.
• Additional resources: Cities can raise funds through municipal bonds, Public-Private Partnerships (PPPs), user charges and financial institutions.
• Convergence: Projects may be linked with schemes such as AMRUT, Swachh Bharat Mission and PMAY.

Special Purpose Vehicle and Digital Infrastructure

Each selected city sets up a Special Purpose Vehicle (SPV) as a limited company under the Companies Act, 2013. The SPV is designed to provide operational flexibility and reduce delays in execution.

• Ownership: The State or UT and the ULB hold equity in a 50:50 ratio.
• Role: The SPV plans, appraises, approves, releases funds, executes and monitors Smart City projects.
• Leadership: A full-time Chief Executive Officer heads the SPV.
• Governance: The Board includes representatives from the Central Government, State Government and ULB.
• External participation: Private sector entities and financial institutions may participate through non-equity stakes.

The mission’s digital backbone is the Integrated Command and Control Centre (ICCC), which links municipal services on a single platform.

• Mobility: Intelligent Traffic Management Systems support signal control, bus tracking and electronic tolling.
• Public safety: CCTV surveillance and emergency call boxes assist in monitoring and rapid response.
• Waste management: GPS tracking and smart bin sensors improve collection routes and fleet management.
• Water services: SCADA systems and smart meters help detect leakage and monitor quality.
• Environment: IoT sensors can display air quality and weather data in real time.

Key Prelims Takeaways

• Launch date: June 25, 2015.
• Nodal ministry: Ministry of Housing and Urban Affairs.
• Total cities: 100 cities selected under the mission.
• Selection method: City Challenge with state-level and national-level competition.
• 100th city: Shillong, selected in June 2018.
• ABD thresholds: 500 acres for retrofitting, 50 acres for redevelopment and 250 acres for greenfield development.
• Funding pattern: ₹500 crore from the Centre and ₹500 crore from States/ULBs per city.